Title
Consider a memorandum/resolution authorizing a Letter of Agreement with Rice Inspection, Inc., for Construction Inspection on the Lift Station No. 6 Rehabilitation and Expansion Project, in the amount of $161,688.00.
Body
DATE: January 6, 2026
TO: Kent Cagle, City Manager
FROM: Andrew Zagars, City Engineer
SUBJECT: Authorize the execution of a Letter of Agreement with Rice Inspection, Inc. for Construction Inspection on the Lift Station No. 6 Rehabilitation and Expansion Project
BACKGROUND AND FINDINGS:
On October 21, 2025, City Council awarded a construction contract for the Lift Station No. 6 Rehabilitation and Expansion Project. Due to the current workload of City inspectors and the complexity of this Water and Sewer capital improvement plan (CIP) project, Staff is recommending the outsourcing of construction inspection for this project.
City staff negotiated a letter of agreement (LOA) with Rice Inspection in an amount not to exceed $161,688 for construction inspection on the Lift Station No. 6 Rehabilitation and Expansion Project. Rice inspection is currently providing construction inspection on three Water and Sewer CIP projects.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms to state and local policies. Texas Government Code, Chapter 2254, states that contracts for the procurement of defined professional services may not be awarded on the basis of competitive bids. Instead, they must be awarded on the basis of demonstrated competence and qualifications.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The total expenditure of $161,688 will be encumbered in fiscal year 2026 and spent between fiscal years 2026 and 2027.
Is this a one-time or recurring revenue/expenditure?
One-time
Is this revenue/expenditure budgeted?
Yes, funds are available in account 355-56201-900-400-922020 CIP Projects/Construction.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
City Council authorize the City Manager or designee to execute a Letter of Agreement with Rice Inspection, Inc. for construction inspection on the Lift Station No. 6 Rehabilitation and Expansion Project in the amount not to exceed $161,688, and authorize the City Manager, or designee, to execute any and all amendments and change orders within the amounts set by state and local law.
DEPARTMENTAL CLEARANCES:
Engineering Services
Finance
City Attorney
ATTACHED SUPPORTING DOCUMENTS:
Proposal
Agreement
Certificate of Interested Parties
Presentation